Student Loans Company reviews processes after 'spying' scandal

'The Student Loans Company (SLC) is reviewing its process for detecting fraud after the Guardian revealed that dozens of vulnerable students were losing funding and dropping out of university despite no finding of guilt against them.

The SLC made a random selection of 150 estranged students, part of a group recognised as vulnerable because they have no relationship with their parent and tend to be financially disadvantaged, and asked them to provide evidence that they no longer had contact with their families.

Charity workers supporting the students said if they failed to respond within 28 days with the required proof their funding was suspended.

In some cases, students’ social media accounts were monitored for any contact with parents, leading to accusations of spying.

The minutes of an SLC meeting seen by the Guardian said 81 of the 150 had funding withdrawn. The figure has fallen as some cases have since been resolved, but campaigners said the affected students suffered enormous stress and hardship as a result.

Stand Alone, a charity that supports estranged people, on Wednesday said it had spoken to the chief executive of the SLC, Peter Lauener, who said he would be launching a review of the process following condemnation.'